It doesn't work that way when it's guaranteed money.

Andrew Luck - QB - Player

Assuming they land the No. 1 pick, the Colts will take Stanford QB Andrew Luck, according to ESPN's Adam Schefter.

At 0-11, the Colts are two games clear of the Rams and Vikings for the league's worst record. Executive Bill Polian said Monday that the Colts would be willing to pay both Peyton Manning and a No. 1 overall quarterback. It's also possible that the Colts move on from Manning after the season. "Luck can start looking to buy a new house in Indianapolis," writes Schefter.
Source: ESPN.com

How does it work? Are the cap numbers figured differently?

The colts have clearly stopped playing hard.......sucks for the vikings.

I don't really care about the Colts but seeing Manning another uniform would just seem wrong.

Peyton Manning - QB - Colts

The Colts owe Peyton Manning a $28 million bonus before the start of the 2012 league year.

This is significant because it means the Colts can't trade Manning before forking over this huge sum. If they pay him and then trade him, the cap charge against the Colts will be $38.8 million. And if they trade him after the 2012 season, the 2013 cap charge would still be $28.8 million. If Manning won't adjust his contract parameters, the Colts will either have to cut him or keep him for two more seasons.
Source: Indianapolis Star

If they cut him they'll still have to pay him it just won't count against the cap? Or how does that work exactly?

If they cut him, he is an UFA and they dont owe him anything, IF I read it correctly. Basically his deal became a one year deal, until he signs his next bonus. They have to decide to pay and keep him, or flat out cut him free. Ill look for the link I read a while back, but he already got some money when he signed it, and wanted worked so if he didnt recover properly, both he and the Colts were protected. They can cut him and allow him to be a FA or they can pay him another bonus and keep him.

Peyton Manning - QB - Colts

NFL Network's Mike Lombardi believes the Colts can indeed trade Peyton Manning if they get Manning to rework his $28 million option bonus.

"There are a lot of ways to get around this, but clearly re-doing the contract is the first step," said Lombardi, a former NFL GM. Manning's $28 million option is due right around the start of the new league year, so the Colts will need quick cooperation from both Peyton and another team in order to pull this off, particularly if Manning won't delay the payment. Lombardi suspects the Colts will try to trade him out of the conference to an NFC team, suggesting the Redskins. "Lot of money, lot of availability," said Lombardi. "And oh, by the way, they really need a quarterback badly. They need a signature face on their franchise."
Source: NFL.com

Just our luck. Manning gets hurt and the colts can't win now and beat out the vikes for the first pick.

The Vikings are fighting with the Rams for the #2 and I don't think the Rams will move (they have no QB, tough schedule) unless they can stop Tarvaris lol... There's a chance MN can win the tie breaker since they are close.

But if the Vikes get lucky and win a game that might drop them to #4 behind JAX, and there's 6 teams at 4-8 after JAX (5 of which have had an easier schedule than the Vikes). So winning another 2 games could drop the Vikings draft around position 5-7 spots (depending on how their situations end up obviously)

The updated top 16 http://es.pn/sYDjir

I think the Colts win this week and the Vikings lose, making it a 1 game difference.

Interesting. What if St. Louis picks #1 overall? I assume they'll trade the pick.

Robert Griffin III - QB - Player

ESPN's Chris Mortensen reports that the Colts have done enough film study on Baylor QB Robert Griffin to select him "without regret" if they beat the Jaguars on Sunday and land the draft's No. 2 pick.

The Rams would draft No. 1 overall in the above scenario. The Colts have reportedly spent "significant time" evaluating Griffin both on tape and in person to feel good about him as a franchise signal caller if they miss out on Andrew Luck. The NFL is as high, or higher, on Griffin as we suspected. He's not going to make it past the No. 3 overall pick in April's draft.

Peyton Manning - QB - Colts

According to ESPN's Chris Mortensen, Colts owner Jim Irsay "will never trade" Peyton Manning.

Mort also reports both Irsay and Manning have emphatically denied discussing pushing back the March 8 due date for Manning's $28 million option bonus. The duo will "jointly determine" Manning's future, and the matter of Manning's potential release remains a "medical issue" for the time being. Our best guess remains that Manning will be released just before or on March 8.
Source: Chris Mortensen on Twitter

Stupid if the colts trade away the #1 pick. Franchise quarterbacks don't grow on trees.

Peyton Manning - QB - Colts

ESPN's Adam Schefter reported on SportsCenter Wednesday that Peyton Manning "will not push back" his $28 million roster bonus and will either stay with the Colts or be released by the Colts.

Per Schefter, the sides are dug in. Owner Jim Irsay isn't going to trade Manning, and Manning won't restructure his contract to allow the Colts to get something in return. The $28 million bonus is due on March 8. Irsay is staunch in his commitment to pay Manning if he's healthy, but he's going to have to receive medical clearance from neck surgery in order to see the money.

Peyton Manning - QB - Colts

SI's Peter King reports Peyton Manning would like to be a part of a "package deal" with free agent Reggie Wayne.

King says Manning would "love" to see the pairing happen, while Wayne is "very interested in the combo platter." According to King, "at least" two potential suitors are already open to the idea. King believes the Dolphins, Jets, Seahawks, Redskins and Cardinals would all be open to the arrangement in some form. Noted for the nearly telepathic connection he likes to cultivate with his receivers, the move would be a boon for Manning, but it's possible Wayne's demands in free agency could spoil the party.
Source: Sports Illustrated